What You Need to Know

You can claim eligible medical expenses on your tax return to reduce your tax payable. The key is that you must exceed a threshold first: 3% of your net income or $2,552 (for 2025, the 2026 figure will be indexed), whichever is less. You claim them on Line 33099 of your personal income tax return. Eligible costs include many out-of-pocket expenses for dental work, vision care, prescription drugs, and certain therapies not covered by provincial health plans or private insurance.

What Medical Expenses Are Actually Eligible?

The CRA’s list is extensive but specific. It’s not just about doctor’s bills; it includes many costs you pay yourself after any insurance or benefit plan reimbursements.

Commonly Eligible Expenses

• Dental Services: Fillings, root canals, crowns, dentures, braces, and cleanings. Basic check-ups are eligible, but cosmetic procedures (like whitening) are not.
• Vision Care: Prescription glasses, contact lenses, laser eye surgery (like LASIK), and eye exams. Non-prescription sunglasses are not eligible.
• Therapy & Medical Services: Payments to licensed practitioners like psychologists, physiotherapists, speech therapists, and acupuncturists (where licensed). Receipts must show the practitioner’s license number.
• Medical Devices & Equipment: Hearing aids, wheelchairs, walkers, blood glucose monitors, and CPAP machines. Prescription is often required.
• Prescription Drugs & Medications: Medications prescribed by a doctor and purchased in Canada. Medical cannabis purchased from a licensed producer with a prescription is eligible.

Key Exclusions & Gray Areas

• Over-the-counter items (vitamins, pain relievers like Advil) are not eligible unless specifically prescribed.
• Gym memberships, fitness equipment, or nutritional supplements for general health are not deductible, even if recommended by a doctor.
• Travel expenses to receive medical care can be eligible, but only if you traveled at least 40 km one-way to access the nearest available service. You must keep detailed records of kilometers and receipts.
• Expenses paid by any insurance plan or health spending account (HSA) reimbursement are not claimable. You can only claim the net amount you paid out-of-pocket.

Common Mistakes Canadians Make

These errors can lead to a reassessment or a denied claim.

• Claiming the Full Amount, Not the Net Cost: You must subtract any amount reimbursed by a private insurance plan, employer benefits, or provincial programs. Only your out-of-pocket portion qualifies.
• Missing the 12-Month Claiming Window: You can claim expenses paid in any 12-month period ending in the tax year. You don’t have to use the calendar year. Strategically choosing a period that maximizes expenses over the threshold can yield a larger credit.
• Not Getting Proper Documentation: A simple cash register receipt is often insufficient. For services, the receipt must show the patient’s name, the service provider’s name and business address, the date and amount paid, and the type of service. For devices and drugs, a prescription or note of medical necessity strengthens your claim.
• Forgetting Eligible Dependents: You can claim expenses you paid for your spouse or common-law partner, and children under 18 (or dependent children of any age if infirm). This can help pool expenses to surpass the threshold faster.
• Assuming All “Health” Costs Qualify: This is the biggest misconception. Cosmetic surgery, elective procedures not deemed medically necessary, and general wellness expenses are almost never deductible.

Step-by-Step Guide to Claiming for 2026

1. Gather All Receipts: Collect every receipt for eligible medical expenses paid for you, your spouse, and dependent children in 2025 or early 2026. Ensure they are detailed.
2. Calculate Your 12-Month Period: Choose the 12-month period (e.g., July 1, 2025 – June 30, 2026) that gives you the highest total of unreimbursed expenses.
3. Calculate the Threshold: Determine 3% of your net income (line 23600). For 2025, the alternative minimum is $2,552. The 2026 amount will be slightly higher due to indexation; check the CRA website. Your threshold is the lesser of these two figures.
4. Calculate the Claimable Amount: Subtract your threshold amount from your total eligible expenses for your chosen 12-month period. If the result is negative, you cannot claim anything for that period.
5. Complete Your Tax Return: Enter the claimable amount on Line 33099 of your personal income tax return (T1). Tax software will guide you through this. The federal credit is 15% of this amount, and your province will also apply a parallel credit (e.g., 5.05% in Ontario), reducing your total tax payable.
6. Keep Your Records: Keep all receipts and documentation for six years in case the CRA asks to review them.

Provincial Differences

The list of eligible expenses is largely federal, but some provinces add specific supplements or have different credit rates.

• Quebec: Has its own detailed list and form (TP-1.D). It often includes additional items, such as certain fertility treatments, with different rules. Always check Revenu Québec.
• Ontario & British Columbia: Offer a seniors’ public transit tax credit and a seniors’ home safety tax credit, respectively, which are separate but related to health and accessibility.
• Credit Calculation: While the federal credit is 15%, the provincial non-refundable credit rate varies (e.g., 5.05% in ON, 5.06% in BC, 10% in PEI). This affects your total savings.

Frequently Asked Questions

Can I claim medical expenses paid for my elderly parent?

Yes, but only if you can claim them as a dependent on your return. This requires that they lived in Canada, their net income was below a certain threshold (for 2025, it’s $15,723 for the Canada caregiver amount), and you provided basic necessities. The rules are strict; consult the CRA’s guide for dependants.

Are health insurance premiums deductible?

Generally, no. Premiums for employer-sponsored health plans are usually paid with pre-tax dollars. Premiums for private plans are not deductible as a medical expense. However, if you are self-employed, you may be able to deduct them as a business expense.

I have a Health Spending Account (HSA) through my corporation. How does that affect claims?

If your HSA covers an expense, that reimbursement is tax-free and you cannot also claim it as a medical expense on your personal return. The HSA is typically a more tax-efficient way to pay for these costs if you have access to one.

What if my medical expenses are below the threshold?

You cannot claim the credit for that period. However, you can carry forward receipts and see if combining them with next year’s expenses in a different 12-month window will push you over the threshold. There is no formal carry-forward, but the flexible 12-month period allows for this planning.

Bottom Line

Don’t leave money on the table. Start a folder now for 2026 receipts, understand the 3% net income threshold, and strategically choose your 12-month claiming period to maximize your credit. A few hours of organization could save you hundreds of dollars at tax time.

This article is for informational purposes only and does not constitute financial advice.